Staff of Reuters 3 minutes Reuters (Reuters) – On Tuesday, European equities fell significantly from two-week highs, snapping a three-day winning streak, as investors flocked to bonds over concerns about the global economy’s recovery. On July 6, 2021, a graph of the German stock market index DAX is shown at the stock exchange in Frankfurt, Germany. REUTERS/Staff As government bond rates in the euro area fell to their lowest levels in at least three weeks, all major European bourses shed about 1%, with France’s CAC 40 down 0.9 percent and the oil-heavy FTSE 100 posting its worst session in two weeks. [GVD/EUR] According to a survey released on Tuesday, German investor sentiment fell much more than expected in July but remained at a high level, while orders for German-made goods fell sharply in May for the first time since the first lockdown in 2020, owing to weaker demand from countries outside the euro zone. In the meantime, after a decline in April, euro zone monthly retail sales rebounded more than predicted in May. However, shares in the region fell sharply after a poll suggested that service sector growth in the United States slowed in June. [.N] “A fall in economic data (does) little to enhance enthusiasm about the recovery track,” said Joshua Mahony, IG’s senior market analyst. The STOXX 600 index lost 0.5 percent throughout Europe, with the autos and components index falling 2.9 percent. Since hitting 2015 highs in early June, concerns over supply chain bottlenecks have impacted on the index. Oil prices fell after an OPEC+ dispute led them to multi-year highs, causing the oil and gas sector to drop 1.8 percent. [O/R] BP, Royal Dutch Shell, and Total, the world’s three largest oil companies, all plummeted between 2% and 4%. Investors will be looking for clues on whether the US Federal Reserve will draw back its big stimulus program when the minutes of its most recent policy meeting are released on Wednesday. Despite increased occurrences of the Delta strain of the coronavirus, markets have stayed afloat so far in July because to a solid resurgence in euro zone economic activity and confidence about a complete reopening of the British economy later this month. STOXX 600 extends gain – graph Alstom, a French train manufacturer, fell 8.4% to the bottom of the STOXX 600 index after forecasting negative free cash flow for the fiscal year. Ocado, a British online grocer and technology company, refunded all session winnings. It had risen 4% after reporting a 20% increase in retail revenue in the first half of the year and announcing the signing of a new partnership to expand grocery chain Alcampo’s online operation in Spain. Sruthi Shankar and Susan Mathew in Bengaluru contributed reporting; Shounak Dasgupta and Peter Graff edited the piece./n
Read More
